Reeds Inc. (REED)

[gumbie05]

FYI- this company has NEVER been profitable despite having very good product(s). I’m not sure how they were able to pull off an equity financing in this market but it was probably in the works over a month ago when it was trading above $0.60 (ie their last Offering price). Nonetheless, it might be worth a shot for a quick trade to pick some up here in $0.38s slightly above the priced deal going into the Summer. Last time they did something similar it took the market a couple months to absorb the new shares so don’t expect this to go past $0.45 any time soon. But if you’re willing to hold it for at least two months then you could see a “pop” back up to $0.60 or so for a decent gain. Make sure to keep a stop loss at $0.30 in the event this breaks down completely. Good luck!

- JMHO